Yahoo Finance JD Sports Plots Takeover Of Rival Chain Go Outdoors
The high street chain JD Sports Fashion (LSE: JD.L - news) is plotting a takeover of privately owned Go Outdoors in a move that would cement its status as the London stock market's biggest sporting goods retailer.
Sky News has learnt that JD Sports is among a number of bidders exploring offers for Go Outdoors, which has been put up for sale by its management and private equity backers.
Several buyout firms are also in the running.
It was unclear on Saturday whether JD Sports had tabled a formal bid yet for Go Outdoors, although an auction run by KPMG is expected to reach a conclusion by the end of the year.
The Manchester-based JD Sports' interest in a takeover underlines the continuing ambitions of its management team, led by executive chairman Peter Cowgill.
The company has demonstrated an impressive track record of growth, and now has a market value of more than £2.5bn.
Four years ago, it acquired the bulk of the Blacks and Millets estates when they ran into difficulty.
In June, it said that the Euro 2016 football tournament had fuelled a surge in sales, despite England's lacklustre performance was encapsulated by its second-round exit to Iceland.
Its fortunes have contrasted with those of Sports Direct, which faces a shareholder backlash at next month's annual shareholder meeting over its corporate governance and working practices.
The news of JD Sports' interest in another deal comes in the same week that data was published showing a 1.4% rise in retail sales in July, confounding some economists' expectations of a post-Brexit referendum slowdown.
Go Outdoors has also grown rapidly, with sales rising by 20% between 2014 and 2015.
The company, which is part-owned by 3i, the private equity group, has embarked on a £10m expansion plan that will include the recruitment of 2000 more staff in addition to its 2500-strong workforce.
Go Outdoors sells products such as bicycles, tents and waterproof clothing, and owns roughly 60 stores across the country.
JD Sports declined to comment.
